Extra Juicy

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According to data from Yahoo Finance, the resort and casino sector is -41% over the last five years, and the overall gambling sector, which includes major sportsbooks and online operators, is +7%; the benchmark S&P 500 index, by comparison, is +71% during that span.

Two blockbuster developments in the casino space earlier this year seemed to indicate an increasingly bullish bet on the sector, including Fertitta Entertainment’s acquisition of Caesars Entertainment in May. The other is a subsequent takeover offer of MGM Resorts from its largest shareholder, Barry Diller’s People Inc. But a negative shift in market conditions could affect both deals.

In July, Fertitta’s General Counsel Steven Scheinthal told the Nevada Gaming Control Board that the company had a letter of intent from banks to finance the transaction but was waiting for better borrowing conditions. Fertitta is assuming nearly $12 billion in Caesars’ debt and is committed to a $6.6 billion financing package.

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The company attributed this positive financial momentum to growth within its digital channels. 

Digital gross gaming revenue represented 64.5% of the parent company’s total in H1, up 3.6 percentage points from the previous year.

Registered customers increased to approximately 2,672,000 at the end of June, an increase of around 50,000 from the previous year.

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According to the German Press Agency, the Frankfurt public prosecutor’s office, together with the Frankfurt tax investigation unit, the State Office for the Combat of Financial Crime in North Rhine-Westphalia and Frankfurt police, executed coordinated searches across 11 premises on Tuesday.

Over 100 officers participated in the operation. Authorities seized several high-value vehicles, froze numerous bank accounts and imposed an asset restraint order valued at around €82 million. An arrest warrant was also executed.

Prosecutors allege that five suspects had operated internet-based gambling services without the required German licences from at least July 2021. The volume of bets placed on these platforms reportedly exceeded €5.8 billion between mid-2021 and the end of 2023.